International Journal of Value Chain Management (18 papers in press)

Regular Issues

• Integrated Decision Support System for Manufacturing Value Chain.  
  by Bhushan Purohit, Vikas Manjrekar, Vivek Singh, Bhupesh Lad 
  Abstract: The increasing level of automation in manufacturing calls for a decision support system, that synchronizes various interdependent functions of a value chain. Such a support system will inherently be based on parametric level integration of value chain functions. Research on integrated planning is increasingly getting momentum. However, the majority of these researches are exploratory in nature and are restricted to simplistic assumptions. Moreover, a composite indicator to evaluate the performance of such support system is missing. Present work aims to provide a decision support system by integrating key decisions pertaining to production, maintenance, quality, and material supply. Novelty of the work lies in integrating the value chain as a whole, while considering the function which extends beyond a manufacturing setup. Further, a composite performance index called "Overall Operations Rating (OOR)" is explicated to simultaneously accommodate multiple performance indicators of any manufacturing shop floor. The developed approach shows significant improvisation in system performance over the existing decision-making systems. For a specific environment, a reduction of around 15 percent in total operating cost and improvement of around 12 percent in ORR are reported using the proposed approach. Further, the application of the demonstrated approach is extended to a broad range of manufacturing environment which generalizes the results and helps in developing decision making guidelines for practicing managers
  Keywords: Scheduling;Maintenance;Inspection;Decision Support Systems;Integrated Decisions Making.
  
  
• Influence of the monopolistic production of mineral water on its value chain in the Czech Republic  
  by Karel Šrédl, Vladimír Kraj?ík, Milan Paták, Lucie Severová, Roman Svoboda 
  Abstract: The research subject is the sale of mineral water, the production of which has the character of a monopoly due to the control of the resources necessary for the production of this product by one firm. The goal of this article is to express the amount of economic profit (within a monopoly) of companies that produce mineral water, achieved due to their privileged position on the given segment of the market; the expression of a value chain of mineral water production will be the means of achieving this objective. The research will also result in recommendations for the behaviour of producers and consumers in a given segment of the mineral water market. The survey shows that due to their monopolistic position on the mineral water market, up to CZK 34 of the firms earnings per litre of mineral water has the character of pure economic profit; this represents, on average, a monopoly profit of 76.87 % of the price of the product.
  Keywords: bottled water; control of the resources; Czech Republic; economic profit; mineral spring; mineral water; monopoly; price; retail chain; value chain.
  
  
• Predictive Models for rail-wagon detention in Food Grain Logistics: A Technological Intervention  
  by Nitish Vinod Sawant, Vinay V. Panicker, Anoop K P 
  Abstract: This work deals with the movement of food grains in India undertaken by a food grain procurement and storage organisation. The movement is primarily achieved through the railway network, followed by the road network. The scope of the work is confined to the movement of food grains in Kerala Region through railway network. This work applies machine learning algorithms to predict the occurrence of rail-wagon detention in the warehouses. Classification models are developed to predict the occurrence of detention at warehouses, and Regression models are developed to predict the detention hours, based on the historical data. Popular algorithms used in this work are Logistic regression, k-Nearest Neighbour, Na
  Keywords: Food grain supply chain; Machine Learning algorithms; Predictive analytics; Random forest; Logistic Regression; Business Analytics.
  
  
• Information System Use and SME Characteristics in Value Chain Activities: Evidence from the Manufacturing Industry in Korea  
  by Jeong Yeon Won, Min Jae Park 
  Abstract: The alignment of business strategy and the use of information systems have been perennial topics of interest for academics and corporate executives. Although previous studies have demonstrated the importance of using information systems for corporate performance and corporate competence, the relationships between how systems are used and the characteristics of companies are still unclear. This study clustered the use of information systems of firms based on the value chain and empirically analyzed the characteristics of each cluster. The empirical analysis utilized 17 major information systems and a sample of 2,012 SMEs in the manufacturing industry. Five types of information systems (IS) use were classified as a result of clustering based on nine activities suggested in Porters theory of competitive advantage. For these cluster types, an ANOVA showed significant differences for all the company factors derived from the TOE framework. In particular, it revealed distinct differences in technical factors (such as information linkage with other companies and technical capability support) and in organizational factors (such as firm size and sales). However, environmental factors (such as industrial clusters and affiliated industries) did not indicate as much of a difference. This study was meaningful as it analyzed the main characteristics of the company in the entire value chain rather than just individual IS activities. It also suggests significant implications for alternative policies, such as the operation of industrial complexes and the activities they focus on under the constraints of SMEs.
  Keywords: Value Chain; Cluster; ANOVA; Information System; SMEs; Manufacture.
  
  
• A HYBRID GENETIC ALGORITHM FOR APPOINTMENT SCHEDULING IN A HEALTH EXAMINATION SYSTEM  
  by Ali Ala, Sajjad Ebadi Torkayesh, Ali Ebadi Torkayesh 
  Abstract: A health examination system (HES) is a large system comprised of many units that includes sectors or rooms, such as health care clinics, each of which requires unique tasks and experts in order to offer complete and timely health care. In general, every HES must accommodate a diverse population of individuals with unique medical histories and special behaviors. Access to and consideration of individuals medical histories can reduce total exam times within an HES. Therefore, this study proposed a hybrid genetic algorithm (GA) that can be used to address the appointment scheduling in an HES in order to reduce the total preparation time of each room or sector, with a general aim to reduce total examination time. A numerical test is performed to investigate the accuracy of the proposed solution approach in comparison to the other solution approaches in the literature.
  Keywords: Health Examination System; Appointment Scheduling; Hybrid Genetic Algorithm; Metaheuristic algorithms.
  
  
• The role of human capital and social capital on the innovativeness of female entrepreneurs  
  by Mateja Vadnjal 
  Abstract: In this article, we focus on the aspects of human capital and social capital in relation to the innovative perceptions of woman entrepreneurs. This study examines the inclination of female entrepreneurs in Slovenia towards innovation. We took the survey questionnaire which was sent to 10.000 female enterprises in Slovenia. The respond rate was 3,4%. After the cluster analyisis 340 women entreprneurs were segmented into four groups. We examined the differences among four clusters of female entrepreneur which were sorted into groups by the indexes showing their level of human capital and social capital. The results show that women with higher level of human capital tend to be more innovative. As for social capital, the importance of friends and social networks has been shown in the group with high level of education and high level of business education, but with lower level of industry experience. To gain advantage of the women entreprenurs, who have not been fully recognized as a promotor of competetive advantage of the national economy, the national policy should be to help highliy educated and professional women to become entrepreneurs with the mission of opening new employment opportunities and growing their businesses.
  Keywords: female entreprenurs; human capital; social capital; innovative strategy.
  
  
• A conceptual information sharing framework to improve supply chain security collaboration  
  by Yannis Koliousis, Umair Tanveer, Shamaila Ishaq 
  Abstract: Modern Supply Chains are critical in terms of efficiency, economic activities and commercial impact in case of security incidents. Inland terminals, commercial ports and dryports constitute key gateways for the transportation flows in these modern supply chains and as such there is an increased need for enhanced security procedures. This paper develops a framework that facilitates the sharing of information among the supply chain stakeholders, which is expected to improve the security level of the entire supply chain. In this context upgraded security strategies may be developed upon existing processes, equipment and infrastructure minimizing time and cost currently needed but more importantly improving the level of security in the supply chain. A conceptual rule and role based data fusion framework is developed enabling seamless and timely exchange of messages. The proposed Data Fusion Framework has a simple architecture that supports quick integration to either network-based, distributed systems or to conventional stand-alone systems and adheres to common data fusion principles. The proposed framework considers different components (e.g. sensors, algorithms and fusing procedures) in an equipment agnostic approach so as to enable easy access and easy usage of security information.
  Keywords: Information systems; supply chain security; transport security; ICT; risk assessment; security awareness; data fusion; visibility; collaborative security.
  
  
• A Periodic Review Inventory System under Stochastic Demand with Controllable Safety Stock, Lead Time, and Price Discount under Partially Backlogged Shortages  
  by Nughthoh Arfawi Kurdhi, Rumi Iqbal Doewes, Yuliana . 
  Abstract: The stochastic inventory system analyzed in this paper explores the problem of the backorder price discount, safety stock, lead time, and review period as control variables to widen applications for a periodic review inventory model. In many practical situations, the variable lead time can be devided into some components which have a crashing cost for the reduced lead time. Moreover, the firm may offer a price discount to the obliged and loyal customers to pay off the uncomfortableness of backordering. Furthermore, the protection interval demand (i.e., review period plus lead time) is assumed to follows a normal distribution. The aim is to develop an algorithm to determine the optimal solutions, so that the total expected annual cost reachs at a minimum value. A numerical example is given to illustrate the application of the system.
  Keywords: Periodic review; safety stock; backorder discount; protection interval; lead time.
  
  
• Assessment of the factors influencing the export of coconut from the Philippines  
  by John K. M. Kuwornu, Marife L. Moreno, Edward Martey 
  Abstract: This study examined the factors influencing the exports of raw coconut from the Philippines to Japan, Hong Kong and China using the gravity model and time series data spanning 1961 - 2017. In the short-run, the results showed that a one-year lag of the export quantity of raw coconut influenced the export quantity. The one-year lag of the export value of raw coconut influenced the export value. In the long-run, the factors that positively influenced the export quantity and value of raw coconut are the coconut production quantity, the gross domestic product of Hong Kong, the population of China and Japan, and the exchange rates of the Chinese Yuan and Japanese Yen. The factors that negatively influenced the export quantity and value of raw coconut are the gross domestic product of Japan, the population of the Philippines and Hong Kong, and the exchange rate of the Hong Kong Dollar.
  Keywords: exchange rate; export markets; gravity model; raw coconut; vector error correction model.
  
  
• Involving Suppliers in Collaborative New Product Development. Comparing Large and Small firms  
  by Luís Filipe Silva, António Moreira 
  Abstract: The main purpose of this article is to investigate Early Supplier Involvement (ESI) in Collaborative New Product Development (CNPD). For that a comparative study between Small and Medium-sized enterprises (SMEs) and large firms was implemented according to the generated innovation. It is based on an exploratory approach, based on case studies involving four firms that involve their suppliers in CNPD. Results show that ESI in CNPD takes place when large firms seek to differentiate their products and SMEs aim to increase their efficiency. The paper further shows that radical innovation promotes ESI in CNPD, both regarding SMEs and large firms. This study contributes to the body knowledge regarding the influence of radical innovation in early supplier involvement in CNPD, by adding a comparative perspective between SMEs and large firms.
  Keywords: Collaborative New Product Development; New product Development; SMEs; Large Firms.
  
  
• Willingness to adopt aquaculture as an alternative livelihood option a case study of the fishers and livestock farmers of Adamawa State, Nigeria  
  by Suleiman D Bello, Krishna R. Salin, John K. M. Kuwornu 
  Abstract: Nigerian farmers have limited options for livelihood, despite the abundant resources available. A case study of Nigerias Adamawa State was done by evaluating the perception of fishing and livestock farming communities on aquaculture. Data were obtained from 324 households, employing a multi-stage cluster sampling procedure and a semi-structured questionnaire. A binary Logit regression model was applied to examine the influence of socioeconomic, technical, and institutional factors on the choice of aquaculture as an alternative livelihood option. The results revealed that approximately 67% and 90% of the artisanal fisherfolks and livestock farmers were willing to adopt aquaculture as an alternative livelihood option, while age, occupation, fishing experience, education level, and perception of fish demand were the significant influencing factors. Encouraging the formally educated, young artisanal fisherfolks to engage in small scale aquaculture will enhance the food and nutritional security of a rapidly growing population in Nigeria.
  Keywords: fishing; livestock; aquaculture; fishers; herders; farming; river Benue; household; socioeconomic; communities; livelihood.
  
  
• Struggling with conservatism: entrepreneurships challenges in business model design  
  by Ignat Kulkov, Magnus Hellström, Kim Wikström 
  Abstract: The purpose of this paper is to investigate the conservative business ecosystem and to identify opportunities for new companies to create value. Authors used a design-oriented case study with a start-up concentrating on the commercialization of the university research. The authors consider a novel business model used by the start-up company. By analyzing the model, methods are proposed for accelerating the company and the business ecosystem. The results indicate that cooperation between the product suppliers and opinion leaders plays a key role in supporting the biomedical business ecosystem. The probability of success for a new product depends on the interest of the professional community. The results add to the existing knowledge on business models for start-up companies to succeed without business expertise and extensive business network. The transformation of customers to partners stimulates the emergence of a new business model that takes into account the new role of a "client-partner".
  Keywords: conservative business; business model design; business barriers.
  
  
• A Model ISM-MICMAC for managing risk in agri-food supply chain: an investigation from the Andean region of Peru  
  by Edgar Ramos, Timothy Pettit, Mamun Habib, Melissa Chavez 
  Abstract: During recent years, supply chain risks have gained importance in the food supply chain. This study presents a methodology to analyse the risk in the Agri-food supply chain belonging to the Andean region in Peru. It utilises the interpretive structural modelling (ISM) with matrice d impacts croises multiplication appliqu
  Keywords: Agri-food supply chain; supply chain; risk management; ISM; MICMAC; Peru.
  
  
• Evaluations of International Brand Alliances  
  by Günay Kurtuldu, Abdullah Okumus 
  Abstract: The purpose of this paper is to understand how Turkish consumers evaluate international brand alliances (IBAs) in terms of perceived fit, ethnocentrism, collectivism, perceived foreignness, attitudes, and purchase intentions variables. The findings show that there are positive relationships between attitude and perceived fit, perceived foreignness, and collectivism while the relationship between attitude and ethnocentrism is negative. Also, while there are positive relationships between purchase intentions and perceived fit, and attitude; a relationship between purchase intentions and ethnocentrism could not be determined. Moreover, positive relationships between ethnocentrism and collectivism, and perceived foreignness were identified.
  Keywords: International Brand Alliance; Brand Alliance; Perceived Fit; Ethnocentrism; Collectivism; Perceived Foreignness; Attitude; Purchase Intention; Structural Equation Modeling.
  
  
• Competence development needs for micro-enterprises entering servitisation  
  by Kyllikki Taipale-Erävala, Matti Muhos, Katariina Ala-Rämi 
  Abstract: Servitisation, as a means to drive growth, provides a great business opportunity for micro-enterprises (micros), offering the possibility of longer and more profitable customer relationships. However, such enterprises possess limited human resources and, thus, competences. Competence-related challenges must be understood in order to operate successfully in the field of servitisation. This study produces new knowledge about competence development needs. The study material consists of interviews conducted in ten Finnish subcontracting micros in the fields of forestry, agriculture, and mining. Using a multiple case approach allows for an extensive examination of the insufficiently studied phenomenon of interest micros engaging in servitisation utilising Tukkers (2004) productservice system. The results contribute both academically and practically by showing that micros face competence-related servitisation challenges in terms of entrepreneurship, change management, and financing. The study broadens Tukkers productservice categorisation to include product manufacturing industries that offer assembly services.
  Keywords: micro-enterprises; competences; servitisation; case study; human resource management.
  
  
• PURCHASE OF FOOD IN LARGE PACKAGES IN THE ASPECT OF FOOD WASTE IN POLAND  
  by Magdalena Ankiel, Urszula Samotyja 
  Abstract: Food waste has become one of the top issues for individuals and organizations involved in food marketing and food policy. The presence of food waste and ways to reduce food waste has generated debate among industry stakeholders, policymakers, and consumer groups. Among the key reasons for wasting food in households, first of all, non-consumption of the product in a timely manner is given, which results in its deterioration or expiration. In the article, the authors presented the results of research on purchasing and consumption behaviour on the food market in Poland, with particular emphasis on buying products in large packaging. The survey results show that in Poland only
  Keywords: retail stores; food waste; food labelling; large packages; food purchase; distribution; shelf life labelling; expiration; food waste reducing; consumption behaviour; value chain.
  
  
• Inventory Management and Performance of Manufacturing Firms  
  by Rashmi Ranjan Panigrahi, Duryodhan Jena, Deepak Tandon, Jamini Ranjan Meher, Padma Charan Mishra, Ansuman Sahoo 
  Abstract: Inventory management practices (IMP) are prevalent in managing and controlling inventory in an organization. It is pertinent to know that the effective use of IMP is a critical success factor for any medium and large manufacturing firms. Inventory management practices deal with inventory control techniques and inventory automation techniques. The firms performance can be achieved through operational efficiency and competitive strength. The study aims to measure the performance of steel manufacturing firms by determining the effect of Distribution turnover and Inventory Automation over competitive strength and operational efficiencies. From the extant literature, it is evident that the above relationship is very limited in the Indian context. To establish the empirical relationship, data were collected from five selected manufacturing firms from the leading mineral reserve state of Odisha. Respondents of the study are some key officials viz., operations manager, production manager, purchase manager, store cum warehouse manager from various manufacturing firms. As per the need of the study, various statistical tools such as correlation, multiple regression, confirmatory factor analysis and Kolmogorov -Smirnov test were used. The outcome of the study concludes that IMP has significant impact on firm performance and also contributes to the existing body of knowledge by helping inventory management practitioners of manufacturing industry.
  Keywords: Firms Performance; Inventory Management Practices; Manufacturing Firms; Operational Efficiency; Productivity Performance.
  
  
• THE ROLE OF EUROPEAN LOGISTICS ASSOCIATION 2020 STANDARDS IN FACING MODERN INDUSTRY EXPECTATIONS AND LOGISTICS MANAGERS COMPETENCIES  
  by Franca CANTONI, Paolo Gaetano Bisogni, Tarvo Niine, Helmut Zsifkovits, Halina Brdulak 
  Abstract: Logistics industry and its operating environment is rapidly changing and evolving. The European Logistics Association, ELA, is actively keeping standards of logistics competence up to date to meet these challenges. This paper reflects on two sessions of experimental workshops working with logistics industry leaders to formulate modern era required competencies in emerging areas of logistics. The purpose of this research is twofold: to identify and understand industry expectations of skillsets in employing logistics specialists and managers in terms of digitalization, resilience and sustainability and to observe the commonalities in perceived competence requirements as stated by involved stakeholders in order to evaluate the maturity of the focal concepts on a practical field. This study contrasts three methods of workshop practice on formulating the expectations and allows additional observations on the homogeneity / heterogeneity of the three focal as expressed by industry leaders. The results emerged have practical implications on specialists working in the field, companies, HR departments, Universities and ELA itself.
  Keywords: logistics competence model; supply chain skills; digitalization; resilience; sustainability; competence expectations.